The Hong Kong Stock Exchange (HKEX) has signed a Memorandum of Understanding (MOU) with Bursa Malaysia in order to enhance capital market connectivity between Hong Kong and Malaysia, including cooperation on dual listings, ETFs, joint development of indices and investment products, Shariah-compliant securities, and carbon markets.

As part of the collaboration, the two exchanges have announced the launch of the HKEX Bursa Malaysia Large Cap Index, a new co-branded benchmark designed to enhance cross market access for investors. It measures the performance of the 60 largest companies listed in Hong Kong and Malaysia by market capitalisation, with 30 constituents drawn from each market and index weightings of approximately 60% for Hong Kong-listed companies, and 40% for Malaysian-listed companies.

HKEX chief executive officer (CEO) Bonnie Chan said in a media release on March 27: “We are delighted to be partnering with Bursa Malaysia to drive enhanced connectivity between our capital markets. Malaysia sits at the heart of Southeast Asia (SEA) -- one of the world’s fastest growing regions -- known for exciting opportunities in sectors such as innovation, consumer and resources, while HKEX is home to Asia’s most vibrant international marketplace, offering exclusive connectivity to opportunities on mainland China.”

“Expanding our engagement with the region is a key strategic priority as we continue our work to build a multi-asset product ecosystem, drawing global liquidity to Asia at a time of heightened macro uncertainties. The launch of the HKEX Bursa Malaysia Large Cap Index, together with the signing of this MOU, marks the latest step in our journey to advance regional connectivity through tangible outcomes that benefit our markets,” Chan added.

Bursa Malaysia CEO Dato’ Fad’l Mohamed, said: “As global markets become more volatile and capital flows rotate dynamically across geographies, internationalisation is a vital growth enabler for exchanges. This collaboration with HKEX aligns with our efforts to boost market vibrancy, expand opportunities for PLCs and investors, and enhance Malaysia’s connectivity and visibility within the global investment landscape." 

“Malaysia’s market is underpinned by a strong base of domestic institutional investors alongside our leadership in Islamic capital market. These strengths position Bursa Malaysia as a platform that connects corporates and Shariah‑compliant investments with regional and global capital, while serving as a gateway for companies seeking access to Asean’s growth markets. The launch of the HKEX Bursa Malaysia Large Cap Index marks an important early milestone under this MOU, elevating the market presence of Malaysian PLCs among investors in the region and highlighting the diversity of our sectors,” he added.

HKEX hosts 30 Malaysian companies listed on its Exchange, part of a total of 103 issuers from SEA.